Tips To Improve Credit Score, Top 13 On The List
Tips to improve credit score is a must learn to maintain a healthy financial status especially your borrowing capacity in time of need to meet financial obligations.
A credit score is an important parameter that’s being used by lenders to ascertain if you qualify to source or be granted a credit loan.
It is however very necessary to have a score on the a high side than a decline, a high score shows you’ve maintained a moderate and appealing attitude towards repayment, while a low score shows you’ve maintained a poor attitude on credit loan, thus reduces your chances of accessing further.
This is usually measured on a scale of:
- Payment History -35% it pays to maintain a descent score to improve your borrowing ability
- Total Amounts Owed -30% this empirically makes up your credit utilization ratio
- Length of Credit History -15% scales how many years you’ve been borrowing, a longer history payment on the positive side, certifies you as safe to source
- New Credit -10% most recent credit in use
- Type of Credit in Use -10% this embodies all credit types ranging from student loan, mortgages, installment and resolving account.
- TIPS TO IMPROVE CREDIT SCORE: HAVE A CALENDAR
Your calendar serves as a repayment reminder which ultimately puts you on check to prioritize your loan and device effort towards settling same.
Once it’s on schedule, there’s a great chance you can execute and offset your loan timely having being listed on top of priority.
- TIPS TO IMPROVE CREDIT SCORE: DO NOT ACCUMULATE FURTHER DEBTS
The best way to improve your credit score is to desist from creating more debts since you already have enough. What’s the essence of seeking more loans when you haven’t paid off your existing once? Says Clara Mills.
It’s a duty on your part to check mate your appetite, on what really takes money out of you. There’s no way your credit score will improve if you’re bent on downward trend.
What matters really is where your money is headed to and why, fix this and watch your credit score improve exponentially.
- TIPS TO IMPROVE CREDIT SCORE: REMIT YOUR BILLS ON TIME
Whatever is worth doing is worth doing well, why accumulate more charges and demurrage on your loan when you can actually pay on time to prevent same.
If you want to reduce your credit score, you must start paying your bills on time to further reduce outstanding debt according to the Canadian press Jonathan Hayward. https://www.moneyadviceservice.org.uk
You should also be careful about the amount of new credit you’re applying for according to Gary Tymoschuk Vice President of operations at Credit Counselling Society. This will surely improve your credit score if monitored.
- TIPS TO IMPROVE CREDIT SCORE: GET EXPERT ADVICE FROM A CREDIT COUNSELLOR
Involving an expert in solving your issues of credit score is not a bad idea, you may not categorically know the intricate basis involved in the type of credit loan you operate, an expert advice is your best bet in time like this.
- TIPS TO IMPROVE CREDIT SCORE: DO AWAY WITH CREDIT CARD BALANCES
What is the essence of accumulating so many credit cards in your wallet when one or two can execute the deal, the credit card balance is the summation of that amount you owe to your card issuer for purchases made so far with your credit card.
You can log into your online account to ascertain how much indebted you’ve been to your credit issuer. Every single purchase and cash advance you embark on contributes to your credit balance.
This is one of the most effective tips to improve credit score on your trend, pay off whatever you have in those cards as balances and move ahead, minding necessary purchases.
- TIPS TO IMPROVE CREDIT SCORE: PAY SAVARELLY IN A CYCLE
You can actually improve your credit score by paying multiple times in a cycle.
For example, there’s no definite rule that you ought to pay for your loan once a month. If you have the opportunity to meet excess funds, kindly prioritize your credit score and pay into your loan account within the cycle
You may have to pay three times in a month to clear your debts even faster to improve your credit score.
- TIPS TO IMPROVE CREDIT SCORE: REACH OUT TO YOUR CREDITORS IN TIME
Just in case due to certain factors beyond control you could not make remittance into your loan account, reach out to your creditors before time, this will help you avert charges that could apply.
If you allow these charges, they will further compound your credit card balance thereby creating more debts that you may not even afford to pay off at long run. Says Smart Dyche Credit expert Canada.
- TIPS TO IMPROVE CREDIT SCORE: AVOID CLOSING OLD CREDIT ACCOUNT
Do not close your old credit account, instead close the new ones. People close their old account thinking they want to hide history, but no, be the way you are rather reduce the credit card balances in those accounts to further satay safe.
- TIPS TO IMPROVE CREDIT SCORE: CONSIDER 0% INTEREST CARD
Some credit card issuers allow about 0% for an introductory period to upward of 18 months.
This is ideal if you are looking to pay off your credit card balance to as well improve your credit score in view of future borrowing.
However be careful before your new 0% interest card hurts your credit score in the process. This has the ability of improving your credit score in 30 days.
- TIPS TO IMPROVE CREDIT SCORE: AVOID APPLYING FOR MULITIPLE CARDS AT ONCE
Applying for multiple cards in a go hurts your credit score badly. Each time you apply for a new card, the issuer takes a glance at your credit score to determine your financial integrity. Each of these practice takes away points from initial score. How long does it take to improve your credit score, effective card usage does it all. https://www.debt.org
- TIPS TO IMPROVE CREDIT SCORE: WHAT ARE YOUR DEBT CONSOLIDATION PLAN
If say you consolidate your credit card debt by taking out an installment loan, may be personal loan and decide to pay off your credit cards, your credit score will have a shift in the positive after some time.
Paying spectacular attention to its consolidation is invariably worth a plus to earn a significant score North wise. Debt consolidation could raise credit score by 200 points.
- TIPS TO IMPROVE CREDIT SCORE: CHECK AND CORRECT MISTAKES ON YOUR FILE
Don’t just pay a deaf ear to this instruction, there could be mistakes on your file you aren’t aware of. Check them out, contact your company and start necessary corrections, you are bound to see improvement in the positive direction.
Silly mistakes could mare your credit card score significantly to a destructive end at large, this will boost your credit score overnight exponentially.
- TIPS TO IMPROVE CREDIT SCORE: YOU COULD HAVE LINKED WITH ANOTHER PERSON
Check out on your account for possible linkage without your approval, it could be family members, friends, other people’s credit ratings being linked to your account will deal a huge blow to your ratings, that itself isn’t any good. Definitely one of the most sensitive techniques on how to increase credit score quickly.
It’s a duty of financial interest and obligation to look at your credit score and get worried in its improvement and overall performance. You now have what it takes to address the situation to a positive trend within a given a time.
Carefully apply the above tips to improve credit score, get more loans alongside a good credit history to enable you access more funds going forward.
Are there other tips you know that can even do it better, let’s here you out using the comment box below.
Raphael is a seasoned and dynamic writer, with interest in Banking, personal finance, entrepreneurship development. A councillor and motivational speaker.